We may see an effort to gun for stops in Asian trading with USD/JPY near the October post-intervention low. USD/JPY fell as low as 76.62 in US trading, just 5 pips above the post-intervention low of 76.57.
In the North American session and at other times recently, JPY has outperformed USD even when risk appetite was improving. That’s not the correlation the Japanese Ministry of Finance wants to see. Even with the US Treasury criticizing intervention, the risk of action is rising.
The data calendar is vacant, save for the 2350 GMT release of weekly Japanese capital flows data.
Closing the book on Wednesday’s session, NZD and AUD were easily the top performers. USD was the worst performer, followed by JPY.
